CMA Reports an Improved Governance Score for Issuers of Securities to the Public

• The Capital Markets Authority (CMA) in Kenya released a report on April 2, 2026, detailing the state of corporate governance for public securities issuers.
• The report indicated an improvement in the overall governance score from 74 percent to 79 percent.
• This 5 percentage point increase was observed for the 2024/2025 financial year.
• The CMA's findings highlight enhanced compliance and adherence to best practices among public securities issuers.
• The improvement reflects a positive trend in corporate governance within Kenya's capital markets.

The reported 5 percent increase in the overall governance score is more than just a statistical uptick; it signifies a maturing landscape for corporate governance within Kenya's capital markets.

The Capital Markets Authority (CMA) in Kenya recently announced a significant uplift in the corporate governance standards observed among entities that issue securities to the public. On April 2, 2026, the Nairobi-based regulator released its comprehensive "Report on the State of Corporate Governance of Issuers of Securities to the Public," which highlighted a notable improvement in overall compliance and adherence to best practices.

The report specifically detailed an increase in the aggregate governance score, moving from 74 percent to 79 percent. This represents a 5 percentage point rise, reflecting enhanced corporate behavior and structural integrity within the public securities market. The improved performance was recorded for the 2024/2025 financial year, indicating a positive trend in the operational and ethical frameworks adopted by these issuers.

The Capital Markets Authority plays a crucial role in overseeing and developing Kenya's capital markets, with a core mandate to protect investors and foster market integrity. The issuance of reports like this one is central to the CMA's strategy for monitoring the health and robustness of corporate governance practices among listed companies and other public securities issuers. By regularly assessing and reporting on these standards, the CMA aims to provide transparency and encourage continuous improvement across the sector.

This ongoing scrutiny ensures that entities operating within Kenya's public securities market maintain high levels of accountability and transparency, aligning with international best practices. The focus on the Issuers of securities governance score underscores the CMA's commitment to creating a fair and efficient market environment, where investor confidence is bolstered by strong corporate oversight. Lawyers advising public securities issuers in Kenya should note this report as a benchmark for evolving corporate governance standards.

The reported 5 percent increase in the overall governance score is more than just a statistical uptick; it signifies a maturing landscape for corporate governance within Kenya's capital markets. This improvement suggests that issuers are increasingly adopting robust internal controls, ethical frameworks, and transparent reporting mechanisms, which are vital for attracting both domestic and international investment. A higher collective score reflects a greater commitment to compliance and responsible management, which can lead to enhanced market stability and reduced investment risk.

This positive trend in the CMA Kenya governance score improvement sets a new expectation for all market participants. It indicates that the CMA Kenya compliance standards are being taken seriously and are actively being integrated into the operational fabric of public companies. Compliance officers must ensure their internal frameworks meet or exceed these improving scores to mitigate regulatory risk and demonstrate adherence to CMA expectations, thereby contributing to the overall strength and reputation of Kenya public securities corporate governance.

Lawyers advising public securities issuers in Kenya should note this report as a benchmark for evolving corporate governance standards. Compliance officers must ensure their internal frameworks meet or exceed these improving scores to mitigate regulatory risk and demonstrate adherence to CMA expectations.

Source: Original reporting via Capital Markets Authority (CMA) Kenya